Gold in Singapore, which normally sets the price trend on the domestic front, rose 0.6 per cent to USD 1,310.70 an ounce, the highest since November 8 and silver by 1.9 per cent to USD 20.88 an ounce, its highest since November 14.

Gold is the second largest import item for India after petroleum. However, gold imports are expected to decline this year as government has taken several measures to curb shipments to address the high current account deficit.

According to the jewellers body, total gold imports may decline to below 500 tonnes this fiscal due to these restrictions, from 845 tonnes in the last fiscal.